Written determination 201210049: Minimum funding waiver request denied

Plain-English summary

The IRS denied a request for a waiver of the minimum funding standard for a plan year ending December 31, 2007. The IRS said the plan appeared close to insolvency, and it was unlikely that granting the waiver would prevent insolvency. The requester did not contact the IRS to schedule a conference within the stated period, so the tentative denial became final.

Ruling snapshot

• Question: Should the plan receive a waiver of the minimum funding standard for the plan year ending December 31, 2007?
• Outcome: Denied.
• Key authorities: IRC § 412; Rev. Proc. 2011-4, section 12.01

Full text (IRS public release)

Significant Index No. 0412.06-00

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE

TAX EXEMPT AND
GOVERNMENT ENTITIES JUL 06 2011
DIVISION

WASHINGTON. D.C. 20224 201210049

SE:TEP:RA:A2

Re:

Dear

This letter is to inform you that your request for a waiver of the minimum funding standard for the Plan for the plan year ending December 31, 2007, has been denied.

In a letter dated June 2, 2011, you were informed that your request for a waiver of the minimum funding standard had been tentatively denied, and you were offered a conference of right in accordance with section 12.01 of Rev. Proc. 2011-4, 2011-1 I.R.B.

123. One of the criteria we are statutorily required to take into account when
     determining whether a waiver of the minimum funding standard should be approved is that it is reasonable to expect that the Plan will be continued only if the waiver is granted. Our primary reason for tentatively denying your request was information received from your authorized representative indicated that the Plan was on the verge of insolvency and that it was unlikely that granting your request for a waiver of the minimum funding standard for the Plan for the plan year ending December 31, 2007, would prevent the insolvency from occurring.

Our letter dated June 2, 2011, stated that if you did not contact us to schedule a conference by June 23, 2011 (21 days from the date of the letter), we would finalize our ruling denying your request for a waiver of the minimum funding standard for the Plan for the plan year ending December 31, 2007. As of June 30, 2011, we have not heard from you or your authorized representative. Accordingly, your request for a waiver of the minimum funding standard for the Plan for the plan year ending December 31, 2007, has been denied.

2
201210049

This ruling is directed only to the taxpayer that requested it. Section 6110(k)(3) of the Code provides that it may not be used or cited by others as precedent.

We have sent a copy of this letter to the [illegible] to the [illegible] and to your authorized representative pursuant to a power of attorney on file in this office. If you require further assistance concerning this matter, please contact [illegible].

Sincerely yours,

David M. Ziegler, Manager
Employee Plans Actuarial Group 2